Today is t = 0. You have just bought a five-year zero-coupon Treasury bond with $1,000 face value. You paid $920.
(a) What is the annually compounded yield to maturity on the bond?
(b) Suppose that yields at all maturities increase to 2% immediately after you have purchased the bond. Calculate the annualized holding period return if you sell the bond one year after you have purchased it, at t = 1.
(c) Suppose instead that you did not sell the bond at t = 1 and held it to maturity. What is the annualized holding period return for the five year investment?
Answers
a. The annually compounded yield to maturity on the bond is 1.7%.
b. The annualized holding period return after one year is 8.7%.
c. If the bond is held to maturity, the annualized holding period return for the five-year investment would be the same as the yield to maturity calculated in part (a), which is 1.7%.
(a) To calculate the annually compounded yield to maturity (YTM) on the bond, we can use the formula:
YTM = ((Face Value / Purchase Price) ^ (1 / Years to Maturity)) - 1
In this case, the face value of the bond is $1,000, and the purchase price is $920. The bond has a maturity of five years. Plugging in these values into the formula:
YTM = (($1,000 / $920) ^ (1 / 5)) - 1
= (1.08695652174 ^ 0.2) - 1
= 0.017 - 1
= 0.017 or 1.7%
Therefore, the annually compounded yield to maturity on the bond is 1.7%.
(b) If yields at all maturities increase to 2% immediately after purchasing the bond and you sell it after one year, the annualized holding period return can be calculated using the formula:
Holding Period Return = ((Selling Price / Purchase Price) ^ (1 / Holding Period)) - 1
Since the bond is a zero-coupon bond, the selling price after one year would be the face value of $1,000. Plugging in the values:
Holding Period Return = (($1,000 / $920) ^ (1 / 1)) - 1
= (1.08695652174 ^ 1) - 1
= 0.08695652174 or 8.7%
Therefore, the annualized holding period return after one year is 8.7%.
(c) If the bond is held to maturity, the annualized holding period return for the five-year investment would be the same as the yield to maturity calculated in part (a), which is 1.7%.
Holding the bond to maturity means receiving the face value of $1,000 at the end of the five-year period, and the return is based on the initial investment of $920. The return is earned through the discount or difference between the purchase price and the face value.
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Related Questions
explain the different process for the development of decision making skill?
Answers
Step 2: Gather relevant information. ...
Step 3: Identify alternative solutions. ...
Step 4: Weigh the evidence. ...
Step 5: Choose among the alternatives. ...
Step 6: Take action. ...
Step 7: Review your decision and its impact (both good and bad)
Devonte is balancing his checking account. His account statement does not include a deposit of $107.00 that he made on November 1st. What is Devonte’s actual account balance?
Answers
Answer:
✓ $1,330.26
Explanation:
Answer:
$1,330.26
Explanation:
A pizza shop plans to deliver pizzas to households. the delivery would be made without any extra charge. it hopes to execute this strategy in the suburbs. this is an example of a(n) _____ strategy.
Answers
Pizza will be delivered to homes by a pizzeria. There would be no additional charge for the delivery. It intends to carry out this plan in the suburbs. This is an illustration of an intended strategy.
The strategy that a company intends to implement is referred to as its intended strategy. An organization's strategic plan often includes a detailed description of its intended strategies.
This is the plan that the senior management group came up with. The intended strategy is the outcome of a negotiation, bargaining, and compromise process involving numerous individuals and groups within the company, and rationality is constrained.
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It is important to receive feedback from customers and employees on a prototype's efficacy. What is
efficacy?
A. How well something decreases raw materials cost
B. How well something increases profits for shareholders
C. How well something accomplishes the goal it was set out to accomplish
*any trolls will get reported*
Answers
Efficacy means the ability to produce the desired output.
It is definitely important to get feedback from employees and customers.
The raw material cost should be reduced subject to not reducing the quality of the raw material. If the raw material quality is affected then it would affect the sales.
To maximize the shareholder profit the sales should be increased and the cost should be reduced. And strategies should be taken to increase sales.
Achieving the goals and objectives would in turn increase the shareholder's return.
To achieve the goals and objectives strategic planning should be undertaken by the company.
use the marketing mix chart or the 4 P's of marketing and explain a current car or musician and write four sentences are more describing each of four p's
Answers
Answer:
The product is a car, the BMW X1
Explanation:
Product: BMW X1, a sports car that is a compact four door SUV, that can go from 0 to 60 mph in 6 seconds.
Price: the starting price of this model $35,400. It is not a cheap car, but it is one of the cheapest models that BMW has to offer.
Place: the car can be evaluated, and bought through BMW's website, although most customers will obviously prefer to buy it in person, in order to test drive. For this reason, the car is sold at most BMW dealerships.
Promotion: this is a car for the upper-middle class, so advertisements tend to cater to that specific demographic group.
The manufacturer of Brand X floor polish is developing a new polish that they hope will dry faster than the competition’s polish. The competition’s polish is advertised to have an average (median) drying time of 7 minutes. In a random sample of 1300 polishes with the new polish, 900 of the polishes dried in less than 7 minutes. Without making any assumptions about the distribution, can the manufacturer conclude that the median drying time for Brand X is faster than the competition's brand? Use the sign test to analyze the results. Step 1 of 2 : Find the value of the test statistic to test that the new polish dries faster than the competition's polish. Round your answer to two decimal places if necessary.
Answers
The test statistic to test whether the new polish dries faster than the competition's polish is 4.64.
To analyze the results using the sign test, we compare the observed number of polishes that dried in less than 7 minutes (900) with the expected number of polishes that would dry in less than 7 minutes if the drying time was the same as the competition's polish (650, which is half of the total sample size). Next, we calculate the test statistic using the formula: test statistic = (observed number of successes - expected number of successes) / sqrt(expected number of successes * (1 - expected number of successes) / sample size) Plugging in the values, we have: test statistic = (900 - 650) / sqrt(650 * (1 - 650/1300) / 1300) = 4.64 The test statistic represents the number of standard deviations away from the expected value. In this case, the test statistic of 4.64 suggests that the observed number of polishes drying in less than 7 minutes is significantly greater than the expected number under the assumption that the drying time is the same as the competition's polish.
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4. You earn $64,000 per year. The government takes 35% in taxes.
a) What's your monthly net pay?
b) You have four months to save for a $3,000 car downpayment. If you save 20% of your net pay
each month, can you reach your savings goal?
Answers
Answer:
Explanation:
35% of $64,000 is $22,400
Yes you can cause if you save 20% of your monthly net pay in 4 months your gonna have $17,920
What was the only thing Amazon sold when it first opened 25 years ago
Answers
HURRY!! Sarah is working at a daycare center. She just thought of a way to streamline the way parents drop off and pick up their children. When she mentions her idea to the director, he asks her to present it at the next staff meeting. What aspect of a good professional relationship is the director demonstrating?
Group of answer choices
Trust
Respect
Boundaries
Diversity
Answers
Answer:
Explanation:
Trust
All funds entrusted to a licensee on behalf of another party in the practice of real estate are by definition ______.
Answers
Answer:
Trust funds.
Explanation:
An agency can be defined as a mutual relationship existing between two parties, wherein a principal authorizes the agent to act as the principal's representative or on his behalf (fiduciary role) in dealing with third parties.
All funds entrusted to a licensee on behalf of another party in the practice of real estate are by definition known as trust funds.
This ultimately implies that, the legal entity or real estate agent (trustee or licensee) would, d be held responsible for the losses, legal claims and damages incurred by the owner of the property (beneficiary), whether or not the agent's actions were authorized or unauthorized by the principal.
Hence, a trustee is liable for acts or contracts entered into by an agent when he or she gives an agent either actual authority (power of attorney) or apparent authority.
PLEASE HELP!! FOR BRAINLIEST!!
After working from home for a year due to a global pandemic, your manager announces there will be a companywide virtual meeting to discuss safely returning to in-office working. What are four safety procedures you would expect the company to have in place to ensure a safe return? Describe the best way to educate staff about the procedures and how they should be enforced.
Answers
As companies start to bring their employees back to in-office work, safety measures must be a top priority to ensure the well-being of all staff members.
Here are four safety procedures that I would expect companies to implement:
1. Regular sanitization: Companies should make sure the office space is thoroughly cleaned and sanitized regularly. This can be done by hiring a professional cleaning service or by providing cleaning supplies for employees to clean their own workspaces.
2. Social distancing: Workspaces should be reconfigured to ensure that employees are at least six feet apart. This can be done by spacing out desks, putting up barriers, and limiting the number of people in shared spaces.
3. Masks: Companies should require all employees to wear masks while in the office. This can be enforced by providing masks for employees or by implementing a “no mask, no entry” policy.
4. Temperature checks: Companies should check employee temperatures before they enter the building. This can be done using thermal scanners or by having employees take their own temperatures at home before coming into the office.
To educate staff about these procedures, companies can send out regular communication via email, intranet, or posters around the office. Staff can also be trained on the procedures during virtual meetings or training sessions. Enforcing the procedures can be done through regular check-ins and reminders, and by providing consequences for not following the guidelines. Companies should also make it clear that these procedures are in place to protect everyone's health and safety.
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could the marketing of diverse hunting/ fishing lodges be conducted effectively by an independent group responsible for multiple properties?
Answers
Yes, it is possible for an independent group to conduct effective marketing for multiple hunting/ fishing lodges.
What is marketing?
Marketing is the process of identifying, developing, and delivering value to satisfy a target market's needs for products and services. It may also involve choosing a target audience, choosing specific qualities or themes to emphasise in advertising, running advertising campaigns, participating in trade shows and public events, designing products and packaging that appeal to consumers, and defining the terms of the sale, such as the purchase price, discounts, warranties, and return policies.
The group would need to develop a comprehensive marketing plan to reach potential customers, which could include both traditional and digital marketing strategies. They would also need to invest in analytics to track the success of their efforts, as well as ensuring that the lodges are properly promoted on social media and other online platforms. Additionally, the group may need to find ways to collaborate with other businesses in the area to cross-promote the lodges.
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assuming you had dinner at Tuscan grille in newburyport your bill is 100 how much tax is added to the bill and what portion of the tax collected goes where
Answers
Answer:
Tax Value = 107.5 - 100 = 7.5
i'm not sure about the last portion
What is a necessary component of a simulation game?
It must be based on a real-world activity or experience.
It must include some learning or practicing an experience.
It must include negative consequences for mistakes.
It must be designed with adult players in mind.
Answers
Answer: Game world. Goals and objectives:
Rules and/or Instructions:
Interaction:
Conflict (and/or competition, challenge, opposition)
Outcomes and Feedback.
Game storyline.
Characters for video game.
Music.
Visuals.
Quality assurance.
Example: GTA aka ; grand theft auto
what are different types of leadership styles? Give 4 examples of leadership styles and explain them.
Answers
It's important to note that no single leadership style is always effective in all situations, and leaders may need to adapt their style based on the needs of their team or organization.
What is Leadership?
Leadership is the ability to inspire, motivate, and guide individuals or groups towards achieving a common goal or vision. It involves the ability to make strategic decisions, solve problems, and communicate effectively. A leader is someone who sets the direction, creates a vision, and inspires others to follow.
Autocratic leadership: In this style, the leader makes all decisions and controls all aspects of the team or organization.
Democratic leadership: In this style, the leader seeks input and feedback from team members and encourages participation and collaboration.
Transformational leadership: In this style, the leader inspires and motivates team members to work towards a shared vision or goal.
Servant leadership: In this style, the leader focuses on serving the needs of their team members and putting their needs and interests ahead of their own.
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WILL GIVE BRAILIEST
Zander is beginning to take college courses to prepare for a career in computer science, which is the study of using logic to create new and improved computer programs. He just finished a class that covered skills for using certain computer programs, but was not required for a degree.
What did Zander take steps to improve by taking this class?
A. career definition and career requirements
B. career requirements and current status
C. current status and intermediate goals
D. intermediate goals and career definition
Answers
Answer:
current status and intermediate goals
Explanation:
True/false. the main goal of monetary policy for recent fed chairmen has been to maintain high employment in labor markets.
Answers
True. The main goal of monetary policy for recent fed chairmen has been to maintain high employment in labor markets.
Since the 1970s, the Federal Reserve has operated under a "dual mandate" from Congress to promote both maximum employment and stable prices. The Fed's monetary policy tools, such as adjusting interest rates and conducting open market operations, are aimed at achieving these goals. Recent Fed chairmen, such as Janet Yellen and Jerome Powell, have placed a strong emphasis on maintaining high employment levels as part of their policy objectives. This is particularly important during times of economic downturns, when job losses can have significant negative impacts on individuals and the economy as a whole. Overall, the Fed's monetary policy decisions are carefully calibrated to promote both employment and price stability in the economy.
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can woolworths raise extra capital for expansion
Answers
Woolworths can raise extra capital for the expansion a shop in each kingdom in Australia. With the organisation and its stores strolling correctly. Woolworths commenced to experiment with expanding their grocery range more shops began stocking clean culmination and vegetables and a bigger variety of meals.
Woolworths has created an aggressive facet thru its tremendous logistics systems and particularly organized providers' contracts, which ensure that goods are introduced at the proper time. further, the employer uses era to manipulate its delivery chain and stock.
Woolworths has created an aggressive part thru its outstanding logistics systems and relatively organized providers' contracts, which ensure that items are brought at the right time. in addition, the employer makes use of technology to control its supply chain and stock.
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If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $1,638 per month 1. How much of each $2,340 payment may be deducted as alimony by Joan? 2. How much of each $2,340 payment must be included in Bill's taxable income? 3. How much would be deductible/included if the divorce agreement were dated 2019? b. Under the terms of a property settlement executed during 2018, Jane transferred property worth $577,350 to her ex-husband, Tom. The property has a tax basis to Jane of $461,880 1. How much taxable gain must be recognized by Jane at the time of the transfer? 2. What is the amount of Tom's tax basis in the property he received from Jane?
Answers
Answer:
$2,400 in 2019 are deductible as alimony.
Step-by-step explanation:
Hillary get divorced in the year = 2016
She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.
His son will reach of the age of 18 = 2016 + 7 = 2023
She has to pay $200 till 2023 and $120 thereafter.
Her payments are deductible as alimony in 2019 would be = $200 × 12
= $2,400
$2,400 in 2019 are deductible as alimony.
$2,400 in 2019 are deductible as alimony.
Hillary get divorced in the year = 2016
She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.
His son will reach of the age of 18 = 2016 + 7 = 2023
She has to pay $200 till 2023 and $120 thereafter.
Her payments are deductible as alimony in 2019 would be = $200 × 12 = $2,400
What is an alimony?Alimony is a legal obligation on a person to provide financial support to their spouse before or after marital separation or divorce. The obligation arises from the divorce law or family law of each country. The purpose of alimony is to limit any unfair economic effects of a divorce by providing a continuing income to a non-wage-earning or lower-wage-earning spouse.
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The buyer of an industrial complex wants the broker to place the earnest money in an interest bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be disbursed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. Which statement describing this situation applies?
Answers
Answer:
Explanation:
In this situation, the statement that would best apply would be that the broker does not have the right to ever use an interest-bearing account under Florida Real Estate laws. Since Florida Real Estate laws specifically prohibit a broker from placing a clients money in an interest account then the broker in this scenario is breaking the law and can have his real estate license taken away as well as being fined.
Candidate Experience Survey
4. What are your reasons for recommending Target?
Answers
Target market provide excellent offers and discounts on high-quality products for men, women, and children, as well as home and personal accessories.
What has made Target so successful?More than half of the company's online sales come from its same-day services, which include Drive Up, a curbside pickup option; Order Pickup, which allows customers to retrieve online purchases in-store; and Shipt, a home delivery service.Target market provide excellent offers and discounts on high-quality products for men, women, and children, as well as home and personal accessories.Our guests' affordability is our priority. Our owned brands and handpicked collection of major national brands set us apart from the competition. Investing in creating a compelling and distinct shopping experience.To learn more about Target Market refer,
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please please help. i need 2,3, and 4 . it is due tomorrow
Answers
Answer:
2. Filing for bankruptcy is when the court decides whether to discharge your debts and those who owe are no longer legally required to pay them. It is on a credit report because it shows what you can pay for and what you can't.
3.Pay Your Bills on Time, Pay off Debt and Keep Balances Low on Credit Cards, and apply for and Open New Credit Accounts as Needed.
4.TransUnion, Equifax, and Experian.
Explanation:
Multiple Choice
Which argument would you use to get a friend to look at the Bureau of Labor Statistics Web site before choosing a career path?
O BLS can tell you if you'll get a position or not after graduation.
BLS can tell important information about education needed, how much demand there is for each job, and approximate pay rates.
O BLS can tell you what kind of boss you will have
O BLS can tell you exactly which career is perfect for your personality
Answers
Answer:
can tell important information about education needed, how much demand there is for each job, and approximate pay rates.
Explanation:
when choosing a marketing channel or intermediary, it is important to ask several key questions, including which of these? it is important to ask several key questions, including which of these?
Answers
When choosing a marketing channel or intermediary, many key questions should be asked, including "which channel and intermediaries will best meet the requirements of the target market?". The correct answer is C.
In selecting a marketing channel and intermediaries, marketing professionals take into account three considerations:
Which will effectively reach the target market?Which will fully satisfy the requirements or the purchasing needs of the target market?Which are going to be most profitable?The market channel is made up of people and organizations that are engaged in the process of making a service or product accessible to be used or consumed by consumers or business users. These let products and services go from a producer via intermediaries to a customer.
This question should be provided with answer choices, which are:
a. Who is responsible for negotiating the channel or intermediary contracts?b. How many of the firm's competitors will be using the same channel?c. Which channels and intermediaries can we best meet the requirements of the target market?The correct answer is C.
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Which economic indicator is the measure of all goods and services produced within a given economy in one year? trade deficit trade surplus gross domestic product (GDP) purchasing power parity (PPP).
Answers
The economic indicator which is the measure of all goods and services produced within a given economy in one year is:
B. Gross domestic product (GDP)According to the given question, we are asked to state the economic indicator which is the measure of all goods and services produced within a given economy in one year.
As a result of this, we can see that the GDP of a country is the measure which shows the monetary value of the goods and infrastructure within an economy and how it has either grown or reduced in a specific time period, usually in one year intervals.
Therefore, the correct answer is option B
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Answer:
gross domestic product (GDP)
Explanation:
b
The owner of the rapids river rafting company wants to advertise to a broader customer base as a way to increase revenue. Employees are a little resistant to his plan. What is one way he can persuade them that this is a good idea?
Answers
Answer:
Document ways diversity played a crucial role for business in the past
Explanation:
River rafting refers to the activity of moving quickly in a small boat along rivers
The owner of the rapids river rafting company wants to advertise to a broader customer base as a way to increase revenue.
But the employees are a little resistant to his plan.
For this document ways, diversity has played a crucial role in business in the past.
So, he can follow such ways.
4. If your checking account's balance is
$3,678.89 and you withdraw $1,514, what
is the remaining balance?
A $2,164.89
B $5,192.89
C$2,614.89
D $3,678.89
(Step by step ) please
Answers
Basically just subtract, 3,678.89-1514 = 2,164.89
pricing is the only element of the marketing mix which gives a)rupee b) cost c) price d) sales revenue
Answers
Who gave the difference between micro and macro economics?
Answers
The distinction between micro and macro economics was first introduced by John Maynard Keynes in the 1930s, in his book "The General Theory of Employment, Interest, and Money."
Micro and macro economics are two branches of economics that study different aspects of the economy. Microeconomics focuses on the behavior of individuals and firms in the market, and how they make decisions about the allocation of resources and prices of goods and services.
On the other hand, macroeconomics looks at the economy as a whole and how the economy performs on a large scale. It examines the overall level of output, unemployment, inflation, and other macroeconomic indicators.
In short, microeconomics deals with small parts of the economy, while macroeconomics looks at the big picture. Microeconomics provides the foundation for understanding the individual pieces of the puzzle, while macroeconomics ties all those pieces together to form a comprehensive view of the economy.
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Explain Kohlbergs three levels of moral development and identify
with reasons, the levels of development exhibited by Mahatma
Gandhi, Nelson Mandala and Mother Teresa?
Answers
Nelson Mandela, Mother Teresa, and Mahatma Gandhi all demonstrated a post-conventional level of moral development. The preservation of life and human dignity is a priority for all three of these great individuals.
According to Kohlberg, there are three moral development levels: Preconventional: Up until the age of nine, conventional morality is the stage. People at this age lack personal standards and convictions and instead, accept guidelines created by adults.
The person adopts the societal rule that distinguishes between right and wrong at this second stage, according to conventional wisdom. By using an adult as a role model, we internalize our moral code at this point. Post-conventional: At this point, the person had begun to comprehend the fundamental moral precepts. The protection of life and human dignity is accorded the appropriate weight at this point.
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